United Microelectronics (UMC) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 26, 2022 5:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome everyone to UMC’s 2022 Third Quarter Earnings Conference Call. [Operator Instructions] For your information this conference call is now being broadcasted live over the Internet. Webcast replay will be available within 2 hours after the conference has finished. Please visit our website www.umc.com under the Investor Relations, Investors Events section.

Now I would like to introduce Mr. Michael Lin, Head of Investor Relations at UMC. Mr. Lin, please begin.

Michael Lin

Thank you, and welcome to UMC’s Conference Call for the Third Quarter of 2022. I’m joined by Mr. Jason Wang, the President of UMC; and Mr. Chi-Tung Liu, the CFO of UMC. In a moment, we will hear our CFO present the third quarter financial results, followed by our President’s key message to address UMC’s focus and fourth quarter 2022 guidance. Once our President and CFO complete their remarks, there will be a Q&A section.

UMC’s quarterly financial reports are available at our website www.umc.com under the Investors Financials section. During this conference, we may make forward-looking statements based on management’s current expectations and beliefs. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including the risks that may be beyond the company’s control. For a more detailed discussion of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC and the ROC security authorities. During this conference you may view our financial presentation material, which is being broadcast live through the Internet.

Now I would like to introduce UMC’s CFO, Mr. Chi-Tung Liu, to discuss UMC’s third quarter 2022 financial results.

Chi-Tung Liu

Thank you, Michael. I would like to go through the 3Q 2022 investor conference presentation material, which can be downloaded for view in real time from our website.

Starting on Page 4. The third quarter of 2022, consolidated revenue was TWD 75.39 billion, with gross margin at 47.3%. Net income attributable to the stockholder of the parent was TWD 27 billion and the earnings per ordinary shares were TWD 2.19. Utilization rate in the third quarter remained at 100% plus. And our overall wafer shipment and also ASP are pretty much in line with our previous quarter’s guidance.

Next page, please. So for the third quarter, revenue grew by 4.6% sequentially to TWD 75.39 billion. Gross margin rate of 47% or in absolute dollar -- NT dollar terms is TWD 35.66 billion. And operating income margin reached 40% compared to 39.1% in the previous quarter. And net income attributable to the shareholder of the parent was TWD 26.99 billion or equivalent of EPS TWD 2.19. This is a meaningful growth compared to TWD 1.74 EPS in the previous quarter.